Understanding Your Loan Choices
The Federal Family Education Loan Program (FFELP) is the largest single source of federal aid for students pursuing higher education. This program has two main sources of funding: Federal Stafford loans for students and Federal PLUS loan for parents.
Federal Stafford Loans
There are two types of Federal Stafford Loans: subsidized and unsubsidized.
- Subsidized If you meet certain financial need criteria, the federal government will pay the interest on your loan while you attend school at least half-time or during times when you qualify for an authorized deferment.
- Unsubsidized If you do not meet the financial need criteria to qualify for a subsidized loan, you can still apply for an unsubsidized loan. You are responsible to pay the interest while you are in school. If you cannot make the interest payments, the interest can be added to your principal balance through a process called capitalization.
| Stafford Loan Program Annual Maximums | ||||
| Year in school | Credit hours | Dependent* | Independent or dependent w/ PLUS denial | |
| Freshman | 0.0-23.9 | $3,500 | $3,500 + $4,000 | = $7,500 |
| Sophomore | 24-51.9 | $4,500 | $4,500 + $4,000 | = $8,500 |
| Junior | 52-83.9 | $5,500 | $5,500 + $5,000 | = $10,500 |
| Senior | 84-120 | $5,500 | $5,500 + $5,000 | = $10,500 |
| Post-baccalaureate | — | $5,500 | $5,500 + $7,000 | = $12,500 |
| Graduate | — | — | $8,500 + $12,000 | = $20,500 |
| * Annual maximums include both subsidized and unsubsidized Stafford loans. These limits apply to loans borrowed from August through July. Amounts listed are the maximum amount a student may receive annually. Aggregate limits, proration, cost of attendance as well as other factors may keep a student from being eligible for the full annual maximum. | ||||
| Lifetime Loan Limits | Dependent undergraduates -- $23,000 | ||
| Independent undergraduates -- $46,000 | |||
| Graduates or professionals -- $138,500 (Note: exceptions may apply to certain graduate students.) | |||
Federal PLUS Loans
If you're an undergraduate student and dependent on your parents, your parents may qualify for a Federal PLUS loan. You must be enrolled in an eligible school, and you and your parent who will be borrowing the money must be U.S. citizens.
The PLUS loan is available without regard to financial need, however, the lender is required to determine whether the parent borrower has a good credit history. Your parents are responsible for repaying the loan; repayment begins 60 days after the loan is fully disbursed.
To be eligible for a PLUS loan, your parents must be your natural or adoptive parents, or stepparents.
The partnership Columbia College of Missouri has formed with Sallie Mae and our preferred lenders will expedite the certification, processing, and disbursement of your education loans. By choosing one of preferred lenders, you will save time and money.
Now parents of dependent students may apply for Plus Loans faster than ever. This process cuts days, and in many cases weeks out of the credit approval process. When you apply online, a credit check will be processed immediately - the results of which are available within one minute. As long as your credit is approved, parents may simply complete a promissory note according to the instructions, print, sign and return it to the appropriate lender.
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